The following information is copyright its original owners. We are
reproducing it here to force a permanent archive
and to prevent loss due to poor servers or lack of disk space. This is a research
archive to facilitate long-term research.READ THE DISCLAIMER AT THE
BOTTOM OF THIS PAGE.

This case is likely to have far-reaching impact on internet
underage model sites.
Consent to photography is not the same as consent to sexual activity. A parent often
may give
consent for a minor to be photogaphed - but not to have sexual relations if those
relations
are contrary to law. We are providing this archive because it is believed that this
will become of the most historical cases of both parental consent and internet clubs.

We would like to extend a very special THANK YOU to one of our readers
who supplied us with all the information we need to update this issue ... including the
web cam captures during the raid. We depend on readers for bona fide -
verified and validated information. Thank you again!

Child Porn Ring Broken Up
Saturday, April 06, 2002 - 12:54 AM ET
(KCNC) (Littleton-AP) -- A Centennial man is in custody tonight after authorities broke up
an alleged child pornography ring in Arapahoe County.
Sheriff's deputies and the Colorado Bureau of Investigation found sexually explicit
materials at businesses in Sheridan known as Lifestyles Photo Company and Denver Digital
Photo Imaging. The businesses are owned by 42-year-old James Grady, who is in
custody on suspicion of sexual exploitation of children. He is being held on one (m)
million dollars bond. Police say there is probable cause to believe girls as
young as 13 posed for explicit photos that were posted on a Web site. (The Site was
trueteenbabes.com) (Source:
http://www.kcncnews4.com/now/story/0,1597,332162-326,00.shtml)

I-Team investigation leads to child porn raid
by 9WTK Producer Nicole Vap April 06, 2002 - 8:16 AM
ARAPAHOE COUNTY - Arapahoe County sheriffs deputies, the Colorado Bureau of
Investigation and Sheridan police raided a business Friday night they say was involved in
kiddie porn. Arapahoe County detectives learned of the operation following an
investigation by the 9NEWS I-Team.

The I-Team began investigating the business at 4301 south Federal in February after
receiving a viewer news tip. To conform with Colorado state law, 9NEWS turned the
information over to the Arapahoe County sheriff. Several dozen officers from
Arapahoe County, CBI, and the town of Sheridan took part in the raid. As they ran in, they
interrupted a live Web cam sex performance featuring two teenaged girls and a young man.
The live performance was being broadcast over the Internet, to subscribers who paid to
watch.

Police arrested the owner of the business, James Steven Grady, as he tried to drive away.
Grady is charged with sexual exploitation of a child. Grady bills himself as a high
fashion photographer, but police say he's a convicted felon, who spent ten years in prison
for burglary, theft and fraud. Police say subscribers pay between $20 and $75 a
month. Grady has 3,000 subscribers, generating at least $60,000 in monthly income.

Grady solicits girls from ages 13 to 17 right on the Web site, and he claims he has
parents sign parental permission agreements to have their children model for him. Parents
who sign acknowledge that their children may be transported to other locations, even to
locations out of state. Girls are paid $50 to $150, depending upon the kinds of
things they agree to do on camera. Grady apparently has similar operations in Las Vegas
and Tampa, Florida.

His Web sites show a number of pictures of teenagers in provocative poses. Grady tells the
girls that what they're doing is completely legal because of the parental permission
slips. Arapahoe County disagrees. Officials say they don't know how many local
teenagers were involved with Grady. They have identified three from local high schools and
his Web site claims many more.
(Source: http://www.9news.com/storyfull.asp?id=1848)
Windows Media File: http://linqstream.alinq.net/pub/9newskusa/ward-105326.asx

Child porn suspect behind bars April 06, 2002 - 5:31 PM
LITTLETON  A Centennial man remained in jail Saturday after police raided two of his
business in Sheridan and found child pornography. James Eugene Grady, 42, is being held on
$1 million bond, but his Web site, which features pictures and video of underage girls, is
still up and running. Police say they found photos and other explicit
materials Friday night when they searched Grady's two businesses Lifestyles Photo Co. and
Denver Digital Photo Imaging. At least two girls from the Denver area posed
for photos, Arapahoe County Sheriff Patrick Sullivan said. Many girls who were
photographed did so with the permission of their parents. Police say there is
probable cause to believe girls as young as 13 posed for Grady.

RESPONSES WE HAVE RECEIVED VIA EMAIL:

... thought you'd be interested to hear about some breaking news regarding a teen model
site (actually the photo studios and office) which was raided LIVE on webcam (see attached
zip file - included are a series of images showing a 17 year old in admittedly
"skimpy" clothing being terrorized by an armed LEA officer. Note the riot
cuffs.).

EMAIL RECEIVED
Listen to the broadcast itself. Why were the cops so concerned with turning off the
web-cam that was broadcasting their arrest around the world when the brought the local
media in to the bust to film it live?

EMAIL RECEIVED
Fact. KUSA orchestrated the "bust" to boost their ratings. They were there with
their film crew. THEY created the "crime". There was NOTHING GOING ON that
matched their on the AIR LIES. NO CRIME TO REPORT??? CREATE ONE. The girls who
worked for either TTB or TTC have been slandered and
smeared by those media WHORES. THEY cast judgment, and made statementts in direct
contradiction of the facts. They even made up some stuff. Thats NOT what the media is for.
THEY do not exist to cast judgment. They should not delibratly try to smear those girls,
who were not doing any of the things the news said.
Now the morality of the site may be questionable, but everything is a grey area.
Pornography is in the mind of the beholder, just like everything else. There are people
out there who like fat chicks like Jana. Nude pictures of her would be toilet paper, to
me, not pornography. If the State cares about the girls the Suposedly are trying to
protect, then why the Ghestapo tactics? Ditto for the TV station. How many SWAT goons does
it take to hog tied a 100lb girl? Did the pigs move the cam to hide the way they felt
around in Rachels thong for a weapon or something? Did they pistol whip Jennifer? How come
the news crew did not get in on that Action? Local, state, and Federal cops show a
suprising reluctance to investigate or question Terrorist suspects in fear of alienating
"certain" ethnic and religious
groups...But from Waco to Rudy Ridge, to Elia Gonzolaz's closet, and NOW TTC they have NO
problem getting the guns out and attacking Americans.
It's also obvious thaat the DA in Denver and the Cops are Looking to attone for the inept
and Cowardly way theirbrethren handledthe Jonbennet Ramsay case and the Massacre at
Columbine. There the Cops cowared in the parking lot for Hours while people werre murdered
inside. The cops probably even killed one of the kids themselves. I'm sure if they
had shot Jennifer or Rachel, it would of made the KUSA people's day!!! Real blood to go
with Fake crime!

NEXT EMAIL:
The girl he was referring to is 18, you idiot. And just so you know, anything you read or
hear about a "sex show", or "explicit sex" is 100% pure fabrication.
That's right, fabrication. Lies. Bullshit. Surprise, surprise, eh? The media lies. If the
facts get in the way of the story being scandalous enough, well why not make a few things
up to boost the ratings. That's exactly what they did. There was no sex show going on
there last night, or any other night. Nor was their anything sexually explicit. Ever.
Anything the media said about a "sex show" being performed is completely
slanderous and defamatory, and I believe if those girls wanted to sue any outlet of the
media who claimed there was a "sex show", they would have ample grounds to do
so.

NEXT EMAIL:
> http://linqstream.alinq.net/ pub/9newskusa/ward-105326.asx
Now this is REALLY bad reporting.. right about the middle you'll notice they show you some
forms that have the words "actual sex scenes". This is displayed right after
they show you the parental release form. What you may not notice is the top of the
form where it says "adults only". Obviously this is not a form for either TTB
or TTC. MAN those lying bastards....busting in on Jenny and Rachel with the guns
drawn, that is so fucked up!!!!!!

EDITOR (04/02/02): We can't archive the streams (even though we
would like to), so they will eventually be gone from the record. Here is a
screenshot of what was presented to the public. Our only point in including this
information is due to the number of people who have written and suggested that we include
this explanation because the use of the document on tv had no bearing on the case in which
he was arrested. In legal circles, this is often called "poisoning the
well" because it paints a picture which looks bad, even though it doesn't directly
relate to the issue at hand. Apparantly, Grady never denied that he handled both
adult and non-adult material.

And here is the actual document that the above screen shot originated from. Well,
actually, the original is located here ... http://www.lpcmodels.com/models.html
but the site has been taken down. Therefore we have archived a copy of the document
from google. The original cache link was:
http://216.239.39.100/search?q=cache:10ijOdzNz8sC:www.lpcmodels.com/models.html+&hl=en

EDITOR (04/15/02): This case is generating lots of interest.
We have been forwarded copies of the documents that parents must sign in order for
their daughters to model. These are the ACTUAL documents archived from the TTB/TTC
site and provided to us. If you choose to read them, think of the interview of
"Justice's" father who claimed he didn't know what was going to happen at a
photo shoot. This is from the packet (which the parent's were required to sign):

"Make no mistake: The images we are planning will be high quality, classy
and personable - but also a bit on the "sexy" side. Simply put - If the
model has long shapely legs, we'll hope to photograph her in the shortest mini-skirts and
shorts she is comfortable with. If she happens to have an above average bustline,
we'll hope to feature her in bikini or tank tops that flatter that feature. The
photographs will be non-nude, but they will be somewhat daring!"

NEXT EMAIL:
"Grady is charged with sexual exploitation of a child" -- but look at the
headlines -- "Child Porn Ring Broken Up" and "I-Team
investigation leads to child porn raid" and "Child porn suspect
behind bars". Was he charged with child porn - making or possessing?
NO. Was he arrested for child porn? NO. Sexual exploitation of a
child is not the same as child porn. If it were, then there would not be two
separate laws. But "child porn" makes better headlines doesn't it!

UPDATED 04-15-02:
EDITOR: This changes the context of the previous email we received as it
substantially changes the focus from the live cam problems to the image problems.Grady faces 726 counts of child porn - Inquiry eyes thousands who allegedly
paid to see teen photos online
April 12, 2002

Prosecutors Thursday leveled 726 counts against a Centennial man suspected of running the
largest child-pornography operation in state history.
The charges came as investigators broadened their inquiry beyond James Grady to include
more than 1,000 subscribers nationwide who allegedly paid to see pictures of underage
teen-agers on the Internet. Meanwhile, the investigation spread to Seminole County,
Fla. Sheriff's spokesman Steve Olson said a teen model allegedly had illegal pictures
taken of her for Grady's Web site. He said investigators don't believe any of those
pictures were taken in Florida. "At this point there is no case in Seminole
County," he said. "We are just assisting Colorado authorities."
Colorado authorities declined to talk specifically about subscribers or any
potential charges they might face. Investigators have pored over Grady's business records
since we was arrested April 5 at his Sheridan studio. "There is still a lot
more work to be done," said Pete Mang, the Colorado Bureau of Investigation's deputy
director. "We have quite a few issues dealing with the Web that still need to be
reviewed." Grady faces 719 felony counts in Arapahoe County District
Court including sexual exploitation of children and contributing to the delinquency of a
minor. While not a record, the charges "are easily close to the most" ever filed
in the 18th Judicial District's history, spokesman Michael Knight said.

If convicted, Grady could serve up to life in prison. "It's going to take a bit
of time to go through" the charges, Grady's attorney, Andy Contiguglia, said
Thursday. "I'm not going to comment on anything more at this time." Grady
allegedly operated Lifestyles Photo Co. and Denver Digital Photo Imaging, both out of an
office at 4301. S. Federal Blvd., for at least 18 months. During that time, the
42-year-old allegedly mixed pornography shoots with regular photography business.

Many of the photos ended up at TrueTeenBabes.com, a site that featured more than 14,500
pictures of high school girls posing in bikinis, lingerie and allegedly in the nude.
Currently, the charges involve eight girls and 180 photographs. Grady is being held
in lieu of $1 million bond. A bond- reduction hearing is scheduled April 19, with a
preliminary hearing May 21
(Source:
http://www.rockymountainnews.com/drmn/local/article/0,1299,DRMN_15_1083497,00.html)
(Source:
http://dailynews.yahoo.com/h/krdenver/20020412/lo/grady_faces_726_counts_of_child_porn_1.html)

NEXT EMAIL:
This case is already having an effect:
"To my non-nude surfers: The time has come to close this site for
now. You may have noticed several other non-nude sites have closed also.
The problem is that in the eyes of most people, pictures of girls that are under 18
are considered child pornography. This misconception has led to the
arrest of the owner of True Teen Babes and True Teen Cams. I am not
willing to walk the fine line between good fun and child pornography any more.
Please visit my other site if you'd like to see pictures of teens.(Over 18
only please) Also please visit these great sites:"
nonudies.com

NEXT EMAIL:
I read your recent emails, but there are a few people not willing to let things change:
"Many of you will notice some changes in the nonude community, in particular with the
content on some of your favorite websites. Because of the recent incident that was
reported in the Denver Post and other news medians, many webmasters have grown the balls
of squirrels and have decided to "alter" the community by running 18+ nonude
websites with nonude content from porn sets. Obviously, this is not what you want when
surfing nonude sites. You want real teens clothed - and because of that, this site won't
change one bit. So, what I am suggesting is you bookmark this website, because many nonude
sites will not link it any longer, nor do some paysites want to be associated with
"lewd" sites such as this one, as some of them put it. There's nothing wrong
with this website - there's nothing illegal. Sit back and have fun. The community has
always been based upon and will continue to be based upon real teens. What you see on this
website is nothing different than what you see on personal homepages, personal briefcases,
waterparks, amusement parks, swimming pools and so forth. I do not take images, I do not
charge membership - I simply run a site that receives submissions from you, the visitors
and share them with everyone else to enjoy. If that's illegal, lock me up now."

MORE EMAILS:
>>>April 15, 2002
Hi !
I am really sorry that someone is so sick that they have to take my photos and touch them
up to make me look nude and then post them on the internet. It's stupid acts like this and
the posting of user names and passwords in password sites this last week, that cost me a
lot of money in band width, and the recent negative publicity about teen modeling sites on
the internet causing the Federal Government to go on a witch hunt to rid the internet of
this type of porn, as they call it, that I have decided that it is in the best interest of
my modeling career to end this web site, and not be ssociated with internet teen modeling
any longer. As of May 1, 2002, Stephtm.com will come to an end. Between now and May 1, I
will continue to provide you ith the best photos as I have in the past, with new photo
shootseach week. I will refund all money to all members that have purchased advance
memberships for the next two months through Paypal and Money Orders. The rest of you will
have your membership continued until you reach your monthly termination date at which time
you will no longer have access to this site. Paycom no longer handles the memberships for
this web site and will not answer to customer complaints or refund requests. There will be
no need to cancel your membership because it will be automatically cancelled when your
current membership ends.<<<

And what the hell happened to the yadayada group?

EDITOR NOTE: The last line refers to a yahoo "club" where this subject
was discussed. Yahoo deleted this group and another for discussing the ttb issue.

Sexual
Exploitation of Children

18-6-403

3

"According to Arapahoe County Spokesman Grayson Robinson, the photographer
was charged with Sexual Exploitaiton of Children"

"The photographer will have to test this law to determine if having girls in
bikinis talking to guys via computer meets the test of "sexually exploitative
material" as defined in the statute."

COLORADO
Colo. Rev. Stat. § 18-6-403 (1998)Child means a person who is less than 18 years of age.
A person commits sexual exploitation of a child if, for any purpose, he or she knowingly:
causes, induces, entices, or permits a child to engage in, or be used for, any explicit
sexual conduct for any commercial purpose or the making of any sexually exploitative
material; or prepares, arranges for, publishes, including but not limited to publishing
through digital or electronic means , produces, promotes, makes, sells, finances, offers,
exhibits, advertises, deals in, or distributes, including but not limited to distributing
through digital or electronic means , any sexually exploitative material; or possesses or
controls any sexually exploitative material for any purpose; possesses with the intent to
deal in, sell, or distribute, including but not limited to distributing through digital or
electronic means , any sexually exploitative material for any commercial
purpose; or causes, induces, entices, or permits a child to engage in, or be used for, any
explicit sexual conduct for the purpose of producing a performance.

Although the simple possession of any sexually exploitative material is prohibited, a
presumption of commercial purpose is created by the possession of three or more identical
copies of any sexually exploitative material. The sexual exploitation of a child is
a class 3 felony; except that sexual exploitation of a child by
possession of sexually exploitative material is a class 1 misdemeanor, but a second or
subsequent offense by such possession is a class 4 felony

§ 18-6-701, Contributing to the Delinquency of a Minor
(1) Any person who induces, aids, or encourages a child to violate any federal or state
law, municipal or county ordinance, or court order commits contributing to the delinquency
of a minor. For the purposes of this section, the term child means any person
under the age of eighteen years.
(2) Contributing to the delinquency of a minor is a class 4 felony.

TITLE 18 > PART I > CHAPTER 110 > Sec. 2251. FEDERAL STATUTE
Sec. 2251. - Sexual exploitation of children
(a) Any person who employs, uses, persuades, induces, entices, or coerces any minor to
engage in, or who has a minor assist any other person to engage in, or who transports any
minor in interstate or foreign commerce, or in any Territory or Possession of the United
States, with the intent that such minor engage in, any sexually explicit conduct for the
purpose of producing any visual depiction of such conduct, shall be punished as provided
under subsection (d), if such person knows or has reason to know that such visual
depiction will be transported in interstate or foreign commerce or mailed, if that visual
depiction was produced using materials that have been mailed, shipped, or transported in
interstate or foreign commerce by any means, including by computer, or if such visual
depiction has actually been transported in interstate or foreign commerce or mailed.
(b) Any parent, legal guardian, or person having custody or control of a minor who
knowingly permits such minor to engage in, or to assist any other person to engage in,
sexually explicit conduct for the purpose of producing any visual depiction of such
conduct shall be punished as provided under subsection (d) of this section, if such
parent, legal guardian, or person knows or has reason to know that such visual depiction
will be transported in interstate or foreign commerce or mailed, if that visual depiction
was produced using materials that have been mailed, shipped, or transported in interstate
or foreign commerce by any means, including by computer, or if such visual depiction has
actually been transported in interstate or foreign commerce or mailed.
(c)(1) Any person who, in a circumstance described in paragraph (2), knowingly makes,
prints, or publishes, or causes to be made, printed, or published, any notice or
advertisement seeking or offering -
(A) to receive, exchange, buy, produce, display, distribute, or reproduce, any visual
depiction, if the production of such visual depiction involves the use of a minor engaging
in sexually explicit conduct and such visual depiction is of such conduct; or
(B) participation in any act of sexually explicit conduct by or with any minor for the
purpose of producing a visual depiction of such conduct;
shall be punished as provided under subsection (d).
(2) The circumstance referred to in paragraph (1) is that -
(A) such person knows or has reason to know that such notice or advertisement will be
transported in interstate or foreign commerce by any means including by computer or
mailed; or
(B) such notice or advertisement is transported in interstate or foreign commerce by any
means including by computer or mailed.
(d) Any individual who violates, or attempts or conspires to violate, this section shall
be fined under this title or imprisoned not less than 10 years nor more than 20 years, and
[1] both, but if such person has one prior conviction under this chapter, chapter 109A, or
chapter 117, or under the laws of any State relating to the sexual exploitation of
children, such person shall be fined under this title and imprisoned for not less than 15
years nor more than 30 years, but if such person has 2 or more prior convictions under
this chapter, chapter 109A, or chapter 117, or under the laws of any State relating to the
sexual exploitation of children, such person shall be fined under this title and
imprisoned not less than 30 years nor more than life. Any organization that violates, or
attempts or conspires to violate, this section shall be fined under this title. Whoever,
in the course of an offense under this section, engages in conduct that results in the
death of a person, shall be punished by death or imprisoned for any term of years or for
life.

Added 04-10-02Centennial man held in child-porn operationSunday, April 07, 2002 - ARAPAHOE COUNTY - Investigators pored through evidence
Saturday in what could be the largest child-pornography operation in state history, and a
Centennial man was jailed on $1 million bail in the case. Arapahoe County Undersheriff
Grayson Robinson said the case, which could have "national and international
implications," has more victims, more material and more monetary potential than any
child- porn case he's even seen.

"We've only hit the tip of the iceberg, in terms of the amount of evidence we've
evaluated," Robinson said. "I believe this will get much bigger."

Police suspect James Steven Grady, 42, used his two businesses, "Lifestyles Photo
Co." and "Denver Digital Photo Imaging," both in Sheridan, as fronts to
lure underage girls with dreams of launching modeling careers.

He is accused of then encouraging them to "go further into the activity,"
Robinson said.

"He paid up to $50 at a time," Robinson said.

Girls ages 13 to 17 were featured on a website in lingerie, bathing suits and nude, he
said.

Two victims were identified as girls from Denver-area schools, Robinson said. Neither
reported the incidents to adults, he said.

On Friday, three additional girls came forward after seeing a television news report about
Grady. Robinson said Grady "encouraged them to pose in several stages of nudity and
expose themselves in a sexually explicit manner."

Grady claims he had the girls' parents' permission to take the photographs, but that
position "isn't very solid," Robinson said.

The parents only "gave permission for them to be involved in modeling, but it appears
(it) went way beyond modeling to encouraging the girls to pose in very (scant)
attire" and nude.

"No parent has the authority to give that kind of permission," Robinson said.

The case will be sent to the district attorney's office Monday or Tuesday, and Grady will
likely face a felony charge of sexual exploitation of children, he said.

Meanwhile, investigators are working to shut down Grady's websites and looking into
co-conspirators and contacts in other states.

"He has contacts in Tampa, Fla.; Dallas, Texas; and Las Vegas, Nev., so we are
dealing with authorities in those states" to find out whether there were shared
websites and servers, Robinson said.

More than 800 cases of child pornography are reported to the National Center for Missing
and Exploited Children each week, according to Tina Schwartz, director of public affairs
for the center.
(Source: http://www.denverpost.com/Stories/0,1002,53%257E511929,00.html)

Up to 50 underage girls likely were sexually exploited during photography sessions with a
man suspected of running one of the largest child-pornography operations in state history,
authorities said Monday.

Investigators have identified three teen-age girls since James Steven Grady, 42, was
arrested Friday night at his Sheridan studio. As many as 60 teens -- ages 13 to 17 --
posed for Grady, who posted the photos on Web sites and is estimated to have made $60,000
a month.

Though some teens did straight modeling work for Grady, many eventually posed nude or
seminude, said agent Bob Sexton of the Colorado Bureau of Investigation. Some girls also
worked in Internet chat rooms, talking to thousands of customers.

"These girls were lured in with thoughts that they'd become real teen-age
models," Sexton said Monday. "We may have 50 girls who were sexually exploited
in some manner."

Grady allegedly operated Lifestyles Photo Co. and Denver Digital Photo Imaging, both out
of an office at 4301. S. Federal Blvd., for at least 18 months. During that time, he
allegedly mixed pornography shoots with regular photography business.

Lifestyles Photo is praised on several adult Web sites, and the company has copyrighted
several sexually explicit images.

One of Grady's models, a 15-year-old girl who declined to be identified, said she worked
with the Centennial man for eight months. She never posed nude and said Grady never forced
any of the teens to take off their clothes.

"The ones who decided to go naked were all older," said the girl, who was paid
$50 per hour for each shoot and an additional $20 an hour to work in chat rooms.
"There are about 54 girls who work with Jimmy, and I'd say 50 of them support him in
this.

"Jimmy always says that if you're not comfortable with what you're wearing or doing,
then don't do it."

The girl's mother, who also declined to be identified, said her daughter had permission.

"He didn't do anything wrong," she said. "Jimmy's a good guy."

Because most of the girls didn't use their real names on the Internet, Sexton said, it has
been difficult finding them. Investigators confiscated several computers and other
equipment from Grady's studio and will start searching through hundreds of pictures this
week.

Business records show that Grady also operated in Nevada and Florida.

Grady appeared Monday in Arapahoe County District Court with a public defender. His bail
remained at $1 million.

Three counts of sexual exploitation will be filed Thursday against Grady.

"We'll find as many of these girls as possible and file (more charges) based on
that," said Grayson Robinson, Arapahoe County undersheriff.

Grady served at least two prison sentences in the 1990s for theft and larceny in Colorado
and has had several contempt-of-court and probation violations. He was released from
parole Sept. 11, about a year after he allegedly started his business.

The investigation of an alleged child-pornography operation has extended to Texas, Florida
and Nevada as officers try to locate girls who were photographed and equipment that was
used.

James Steven Grady, 42, was arrested on suspicion of sexual exploitation of a minor. He is
accused of taking explicit pictures of underage girls and posting them on a Web site.

The Web site was closed down Tuesday after Arapahoe County deputies traced its host
computer to Dallas.

Officers from the Seminole County, Fla., Sheriff's Department and the Las Vegas Metro
Police Department are investigating whether some of the girls who were photographed are
from their areas, Arapahoe County Undersheriff Grayson Robinson said.

Grady, who was arrested Friday, operated a photo studio in Sheridan, a Denver suburb in
Arapahoe County. Deputies were trying to determine whether a Las Vegas photo studio
mentioned on the Web actually exists.

The Web site also mentioned a German glamor photographer named Jimmy Stephans, but
investigators believe Stephans and Grady are the same person, Robinson said.

Investigators have said as many as 60 girls between the ages of 13 and 17 might have posed
for Grady. Some did straight modeling work, but many eventually posed nude or seminude,
investigators have said.

A 15-year-old who posed for Grady has defended him, saying he never forced the models to
undress. She said she was paid $20 an hour to pose in bikinis, shorts and lingerie of her
choosing. Anyone who struck seductive poses did it voluntarily, said the girl, who did not
identify herself.

Grady was being held in the Arapahoe County Jail under $1 million bail.
April 10, 2002

The investigation of an alleged child-pornography operation has extended to Texas, Florida
and Nevada as officers try to locate girls who were photographed and equipment that was
used.

James Steven Grady, 42, was arrested on suspicion of sexual exploitation of a minor. He is
accused of taking explicit pictures of underage girls and posting them on a Web site.

The Web site was closed down Tuesday after Arapahoe County deputies traced its host
computer to Dallas.

Officers from the Seminole County, Fla., Sheriff's Department and the Las Vegas Metro
Police Department are investigating whether some of the girls who were photographed are
from their areas, Arapahoe County Undersheriff Grayson Robinson said.

Grady, who was arrested Friday, operated a photo studio in Sheridan, a Denver suburb in
Arapahoe County. Deputies were trying to determine whether a Las Vegas photo studio
mentioned on the Web actually exists.

The Web site also mentioned a German glamor photographer named Jimmy Stephans, but
investigators believe Stephans and Grady are the same person, Robinson said.

Investigators have said as many as 60 girls between the ages of 13 and 17 might have posed
for Grady. Some did straight modeling work, but many eventually posed nude or seminude,
investigators have said.

A 15-year-old who posed for Grady has defended him, saying he never forced the models to
undress. She said she was paid $20 an hour to pose in bikinis, shorts and lingerie of her
choosing. Anyone who struck seductive poses did it voluntarily, said the girl, who did not
identify herself.

Grady was being held in the Arapahoe County Jail under $1 million bail.

Grady posted the pictures on TrueTeenBabes.com and sold them to several other Web sites,
bringing in an estimated $60,000 a month, officials say.

Arapahoe County plans to file a preliminary case Thursday with the 18th Judicial District
listing three victims and asking that Grady be charged with three counts of sexual
exploitation of a minor, said Undersheriff Grayson Robinson.

Grady had listed 54 girls from 13 to 17 as employees, and investigators are trying to
determine how many posed for sexually explicit pictures, Robinson said.

Deputies shut down the Web site Tuesday after tracking the host of the site to Dallas.

Investigators from the Seminole County Sheriff's Office, located between Orlando and
Daytona Beach, Fla., and the Las Vegas Metro Police Department are looking into the
possibility that some teen victims may be from their areas, Robinson said.

Grady is in Arapahoe County Jail in lieu of $1 million bail. Grady's Web site says that he
operates several Internet sites offering everything from teens in bikinis to nude college
students.

It also mentions an 1,800-square-foot Las Vegas photo studio, with bedrooms, a pool, hot
tub and sand volleyball area.

Investigators are trying to determine if the studio exists, or if Grady created it to
attract potential models.

The Web site also features "Jimmy Stephans," billed as a German glamour
photographer who has taken pictures for Penthouse and is managing partner of the business,
Robinson said. But investigators believe that Stephans and Grady are one and the same.

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